Subsidies, Endogenous Technical Efficiency And The Measurement Of Productivity Growth
The impacts of program subsidy on productivity growth is investigated in this study Mundlak's concept of endogeneity is applied to technical efficiency and generalized within a dual framework. Technology is described by an aggregate cost function while technical efficiency is conditional on a vector of state variables. Empirical evidence from the U.S. dairy sector supports the hypothesis that protectionism, in the form of program subsidy, is the source of considerable technical inefficiencies.
Volume (Year): 26 (1994)
Issue (Month): 01 (July)
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- Martin, John P & Page, John M, Jr, 1983. "The Impact of Subsidies on X-Efficiency in LDC Industry: Theory and an Empirical Test," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 608-17, November.
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